How To Switch Your Bank?

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If you are fed up with big bank fees and poor customer service, you might be considering other options when it comes to banking.

Changing banks is very easy like moving to a new place, but you have to be more careful otherwise the more money you will miss. Change in location, change in needs like this you probably have your reasons for switching to another bank.

So here's how to get ready and do it wisely.

Make a plan

Don't leave your old bank in a hurry. There may be many extra fees associated with closure of your old account.  Check bank statements of the whole year to note any annual charges or items .Track your account to make sure all payments have cleared. Check the following also:

Direct deposits.
Automatic bill payments.
Recurring transfers.
Linked accounts.
Banking alerts.
Smartphone apps.
Text alerts.
Paper checks.
Safe-deposit box.

Find a new bank

You may have found it already, if not search for a bank. Do good homework and select a bank that has the features that are most important to you.  Check the availability of branch on every corner, an ATM in every city,  rewards, credit cards, etc. to select one. Check for

  • Lower fees 
  • Higher interest rates 
  • Lower loan rates 
  • ATM network

 

Open the new account

Open the new account while your old one is still open. Keep some money in your old account because you should have enough funds in your old account to cover automatic payments or checks that haven't cleared. Keeping some money will avoid any minimum-balance fee.

Change any direct deposits

Update your financial information at work. Then your paycheck is sent to your new bank account. Set future bill payments to reach your new account after the date on which your first direct deposit is scheduled to be received on that account. Also, download the new bank's mobile app.

Update information

Check is there any old account information stored with a service provider like your credit cards, cable company, cell phone carrier, etc., these also needs to be updated.

Close your old account

Now You can have a last look and make sure everything in your old bank account has cleared. If you have no outstanding payments or credits, visit the bank and close your account. Call the bank official before that to find out what forms of ID you should bring. There may be a fee to close your account.

Read more about: banking, bank account
Story first published: Saturday, June 3, 2017, 11:41 [IST]
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